• 19 Jul
    This Commodity May Have Reached Its Bottom. Find Out What It Is In Today’s Article.

    This Commodity May Have Reached Its Bottom. Find Out What It Is In Today’s Article.

    • Fertilizer prices have been declining alongside food prices, but food prices are picking up.
    • Fundamentals give downside protection with some risk coming from short term earnings.
    • The long term outlook is positive with balanced markets and demand growth.

    Introduction

    In agriculture and horticulture, potash is the common term for nutrient forms of the element potassium (K). It is used globally for increasing agricultural yields and is an essential fertilizer. More →

  • 18 Jul
    Should You Bet On Small Cap Growth Stocks? Why It May Not Be A Good Option Now

    Should You Bet On Small Cap Growth Stocks? Why It May Not Be A Good Option Now

    • Small cap growth stocks only outperform in the two years after market bottoms.
    • At this moment they provide more risk and less returns than the S&P 500.

    Introduction

    While it’s possible to make money in the stock market, it’s not easy. One thing an investor should know well, and constantly assess, is their exposure to various kinds of stocks, from value and growth stocks to large or small caps. Each type of stock performs differently depending on the economic cycle. However, over the long term small caps and value stocks have outperformed the rest of the market. More →

  • 15 Jul
    Could It Be A Good Idea To Invest In Japan? There’s Upside Potential…

    Could It Be A Good Idea To Invest In Japan? There’s Upside Potential…

    • Price to book is 1.1 and price earnings ratio is at 15.
    • More monetary and fiscal stimulus can be expected.
    • Even if the economy doesn’t pick up Japan is relatively cheap.

    Introduction

    We read a lot about how Japan has been in an economic slump for the past 30 years, how incredibly large amounts of quantitative easing have not triggered inflation, and that Japan should be avoided as an investment opportunity. More →

  • 14 Jul
    As The S&P 500 Reaches New Highs, Asset Inflation Continues

    As The S&P 500 Reaches New Highs, Asset Inflation Continues

    • All factors are indicating an artificially created asset inflation.
    • Earnings are expected to decline with economic outlook being constantly revised downwards.
    • Gold is gaining alongside stocks which confirms that all assets are inflated.

    Introduction

    Amidst all the turmoil from BREXIT, negative interest rates and global downward economic growth forecasts, the S&P 500 has reached a new high. On Monday it closed at 2,137.16 points, overtaking the previous high of 2,130.82 from May 21, 2015. The Monday record was surpassed again on Tuesday and Wednesday, with Wednesday closing at 2,152.43. More →

  • 13 Jul
    Negative Yielding Debt: A Party for Investors or Pure Stupidity?

    Negative Yielding Debt: A Party for Investors or Pure Stupidity?

    • Almost 30% of global sovereign debt comes with a negative yield.
    • The situation is much worse in Japan and Europe than it is in the U.S.
    • Investors should enjoy the asset inflation party while it lasts but also be prepared for the worst.

    Introduction

    Negative yielding debt seemed impossible and illogical for a long time, but it suddenly became a reality a few years ago and now we are seeing it slowly become the new normal.

    This isn’t just strange, it’s dangerous as risk averse investors—like pension funds and insurance companies—are forced to invest in assets that have traditionally been considered safe but that have now become risky, and their returns minimal. Those low returns will result in lower pensions and lower savings which will create new troubles in the future. More →

  • 12 Jul
    Could the Economic Climate in Europe Be Contagious?

    Could the Economic Climate in Europe Be Contagious?

    • The first hard data after the BREXIT won’t be available until October, but property funds are already frozen.
    • The decline of the pound will lower UK GDP and will spill over into Europe.
    • Italian banks are in trouble as 25% of GDP are nonperforming loans.

    Introduction

    As two weeks have passed since the BREXIT debacle, most heads have cooled off and we can calmly look at the current situation in Europe, the repercussions of BREXIT and contagion risks. It is important to analyze the full potential impact of the BREXIT by analyzing the stability of the European financial system, business investments, hiring and the political risk premium. More →

  • 11 Jul
    Watch Out: The FOMC’s Current Stance Could Impact Your Portfolio in the Long Term

    Watch Out: The FOMC’s Current Stance Could Impact Your Portfolio in the Long Term

    • Bonds are becoming riskier as yields are falling.
    • Inflation is at 1.2% and very likely to get higher as full employment is approached.
    • The FOMC predicts stability which could create a great environment for traders.

    Introduction

    On July 6 the Federal Open Market Committee (FOMC) June meeting minutes were released. As they give clear insight into how the controllers of our monetary policy think, it is very important to analyze the minutes in order to better position one’s portfolio and also execute short- and medium-term trades. The FOMC gave a clear indication of their expectations in relation to future GDP growth, unemployment, inflation and its federal funds rate. All of the mentioned indicators will have different effects on various investments. More →

  • 08 Jul
    Prepare for Earnings Season: Prices, BREXIT, GDP & Trends

    Prepare for Earnings Season: Prices, BREXIT, GDP & Trends

    • This article provides a list of companies whose earnings will be affected by the BREXIT.
    • The dollar is stable thus we should not expect strong global currency effects.
    • The probability of U.S. recession has hit an 8-year high which should be detrimental for earnings in the next two years.

    Introduction

    In the long term, stock returns are perfectly correlated with the underlying earnings and therefore the upcoming Q2 2016 earnings season is very important. Positive earnings could push the markets to new highs while bad news could indicate the start of a recession or bear market. More →

  • 07 Jul
    Major Indicators Are All Positive, But Is It Time To Get Fearful?

    Major Indicators Are All Positive, But Is It Time To Get Fearful?

    • Economic data is strong and positive.
    • Neither jobless claims nor consumer spending show signs of weakness.
    • The issues remain in valuations, optimism and low yields.

    Introduction

    In the post-BREXIT world, there is a lot of speculation but no one knows what will happen. This article is going to provide a general outlook on how the economy is doing and try to extrapolate trends while ignoring the noise provided by the media. More →

  • 06 Jul
    How Diversified Should You Be?

    How Diversified Should You Be?

    • Extreme diversification is good but only provides ordinary results results.
    • Concentrated portfolios proved better in some cases as they allow investors to select the best companies.

    Introduction

    A few days ago we discussed passive and active strategies given that there is a looming risk of a recession and that the markets are unable to break new highs which makes just holding stocks for the sake of holding stocks very risky. In this article we are going to discuss how diversified a portfolio should be as it is easier to pursue an active strategy with a concentrated portfolio of stocks. More →

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